Novelties in the Corporate Income Tax and VAT in 2023 introduced in the General State Budget Law for the year 2023. All these novelties come into force on January 1st, 2023. Our experts in Tax Advice summarize these novelties.
Novelties in the Corporate Income Tax and VAT in 2023
We are going to see next the novelties in both taxes, as well as the interest of legal delay of the money and the IPREM indicator.
Corporate Income Tax
In this tax, two important novelties affecting companies are noted.
Firstly, the reduced rate of taxation
For tax periods beginning on or after January 1, 2023, a reduced tax rate of 23% is created. However, the following requirements must be met:
- The net turnover of the previous tax period is less than 1 million euros.
- It is not a question of patrimonial entities.
Secondly, regarding the accelerated depreciation of certain vehicles for corporate income tax purposes.
Investments in certain types of vehicles, such as new FCVs, FCHVs, BEVs, REEVs or PHEVs. As defined in Annex II of the General Vehicle Regulation, accelerated depreciation may be applied.
This will consist of multiplying x 2 the maximum linear coefficient in tables. However, the following requirements must be met:
- They are used for an economic activity.
- They must be put into operation in 2023, 2024 and 2025.
VAT Tax
The new features are as follows.
Firstly, tampons, sanitary towels, pads, panty liners, condoms and other non-medicinal contraceptives will be taxed at a reduced rate of 4%.
Secondly, the so-called “effective use” rule means that the provision of certain services, which according to the rules on the place where the taxable event takes place would be understood to be carried out outside the Community, will be subject to VAT when the effective use or exploitation of those services is carried out in its territory of application. The “effective use” rule will not apply to supplies of services between entrepreneurs. On the other hand, it will apply to the supply of intangible services to final consumers not established in the EU. However, it must be established that the actual consumption or effective exploitation of the service takes place in the IAT.
Thirdly, the previous clause will also apply to the leasing of means of transport.
In addition, the reverse charge mechanisms related to supplies of waste and scrap of plastic and textile material are modified.
Finally, the reverse charge rule will not be applied to the leasing services of real estate subject to and not exempt from the tax. When they are carried out by entities or persons not established in the TAI. Neither will it apply to intermediation services in the leasing of real estate carried out by non-established businessmen or professionals.
Other new developments of interest
The default interest and the legal interest of money for 2023 are fixed at:
- the legal interest on money at 3.2500% and the interest for late payment at 3.2500%.
- and late payment interest at 4.0625%.
Public Indicator of Multiple Effect Income (IPREM). The amounts for 2023 are fixed as follows:
- daily, €20
- monthly, 600€.
- 7,200 per year
- 8,400 in cases where the reference to the minimum interprofessional wage (SMI) has been replaced by the reference to the IPREM. However, if the extraordinary payments are excluded, the amount will be €7,200.
